Method and apparatus for identifying potential buyers

ABSTRACT

A method by which potential buyers are identified includes receiving a description of an item a potential buyer intends to purchase within a particular time, determining a reward for the potential buyer based on intent data, providing the reward to the potential buyer and applying a penalty to a financial account of the potential buyer if the potential buyer does not purchase the item within the particular time period. The system includes a controller coupled to at least one input device with the controller operable to compute a reward offer. The controller includes circuitry, or software, configured to compute and apply a penalty if the potential buyer does not purchase the item within the particular time period.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to demand forecasting systems.

2. Discussion of the Related Art

Most businesses use forecasting techniques to predict the future demandfor their products or services. Anticipating these sales helps suchbusinesses optimize inventory levels, adjust staffing requirements, oreven set production schedules. A convenience store expecting heavytraffic for a summer holiday weekend, for example, might hire an extraemployee and stock more cold beverages in anticipation of the higherlevel of sales. Automobile manufacturers might add a second shift to anassembly line if the demand for cars is expected to increase. Accurateforecasts allow companies to more appropriately allocate resources.

One way that sellers have attempted to predict demand is by projectingpast sales into the future. For example, the airline industry uses pastload factor data in order to help set current and future ticket prices.However, such projections of past data are speculative at best in thatmarket conditions can change dramatically, rendering the historic datauseless. There is simply no guarantee that the future is going to besimilar to the past. Accordingly, projecting future sales based on pastresults is simply not a reliable forecasting tool for many businesses.Furthermore, such demand forecasting systems predict aggregate demand,rather than demand of individual customers.

Another method for attempting to predict demand is to try to anticipatenew trends in the market. For example, a car manufacturer might predictthat luxury vehicles are going to be more popular if the stock marketexperiences a substantial increase in value. Such projections aretenuous, however, since they ultimately rely on a past trend (luxurysales correlated with higher stock prices) continuing into the future.

Some businesses have limited access to demand data in the form ofcustomer input. Many electronic commerce sites, for example, allowcustomers to place goods into “virtual shopping carts.” Such shoppingcarts allow customers to store indications of products that they intendto purchase. Some demand information can be derived from which items arestored in these shopping carts, but e-commerce merchants do not know ifthe customers are actually going to purchase the products. There is noway for the business to know which items will actually be purchased.

Traditionally, prospective buyers have had little or no reason or methodof informing sellers of their desire to purchase products before theyactually purchase products, thus depriving sellers of useful consumerdemand information. Rather, the only way that sellers have traditionallybeen able to collect such demand data is after customers have purchasedproducts.

SUMMARY OF THE INVENTION

It is an object of the present invention to provide a potential buyeridentification system that overcomes the drawbacks of existing demandforecasting systems by enabling sellers to identify a potential buyerbefore any purchases are made. The present invention provides apotential buyer identification system that encourages potential buyersto provide individual, specific demand information.

In the potential buyer identification system of the present invention, apotential buyer provides to a central server a description of an item heintends to purchase. Either the potential buyer or the central serverspecifies a time period in which the item is to be purchased. Inexchange for the information provided, the potential buyer is offered areward, such as a gift or a discount. The value of the reward may bebased upon the amount and specificity of the information provided by thepotential buyer, and/or the value of this information to sellers, suchas manufacturers, retailers and distributors. When a description of theitem is provided, the potential buyer is prompted to provide a paymentidentifier, such as a credit card or a debit card number. In thismanner, the central server may apply a penalty to the potential buyer'sfinancial account for failure to purchase the item within the specifiedtime period.

A method of the present invention includes the steps of receiving atleast a description of an item a potential buyer intends to purchasewithin a particular time period, determining a reward for the potentialbuyer based on the information received, providing the reward to thepotential buyer, and applying a penalty to a financial account of thepotential buyer if the potential buyer does not purchase the item withinthe particular time period. The apparatus includes a central servercoupled to one or more input devices and operable to calculate a rewardoffer. It also includes circuitry, and/or software configured to computeand apply a penalty if the potential buyer does not purchase the itemwith the particular time period.

These and other features and advantages of the present invention will beunderstood upon consideration of the following detailed description ofthe invention and the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram overview of a potential buyer identificationsystem according to an exemplary embodiment of the present invention.

FIG. 2 is a block diagram of a central server according to oneembodiment of the present invention.

FIG. 3 is a tabular illustration of a potential buyer database accordingto one embodiment of the present invention.

FIG. 4 is a tabular illustration of a rating database according to oneembodiment of the present invention.

FIG. 5 is a tabular illustration of an intent database according to oneembodiment of the present invention.

FIG. 6 is a tabular illustration of a reward database according to oneembodiment of the present invention.

FIG. 7 is a tabular illustration of a penalty database according to oneembodiment of the present invention.

FIG. 8 is a process flowchart illustrating one embodiment of a method ofthe present invention.

FIG. 9 is a process flowchart illustrating one embodiment of anothermethod of the present invention.

FIG. 10 is a process flowchart illustrating one embodiment of yetanother method of the present invention.

FIG. 11 is a tabular illustration of a seller account database accordingto one embodiment of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

A system embodying the present invention receives intent data from apotential buyer who intends to purchase a particular item within aparticular time period. It should be understood that the term “item”need not be limited to goods, but could also include services, such ascontractor services or videos downloaded to a viewer's multimediadisplay, as well as transactions that do not require delivery, such asthe purchase of shares of stock. The intent data includes a descriptionof the item and may also include other information, such as a degree ofcertainty with which the potential buyer intends to purchase the item,and a particular time period within which the potential buyer intends topurchase the item. The system determines a value of the intent data andidentifies a reward based on that value. In this manner, the potentialbuyer may be rewarded for providing information about his intent topurchase one or more particular items. Thus, the potential buyer is morewilling to provide such information, than if he were not rewarded. Ifthe potential buyer decides not to purchase the item within theparticular time period, the system charges a penalty to the potentialbuyer's credit card or other financial account.

For example, one potential buyer may provide the model number of atelevision that she is 100% certain she will purchase within one week.Another potential buyer may indicate that he is only 50% certain he willpurchase a telephone within two months. Comparing the two, theinformation provided by the first potential buyer may be more valuableto sellers than that provided by the second potential buyer, because ofthe increased specificity, particularly the high degree of certainty setforth by the first potential buyer. Thus, the first potential buyer mayreceive an offer for a more valuable reward than the second potentialbuyer. However, if either of the potential buyers fail to purchase thetelevision or telephone, respectively, within the time periodsspecified, a penalty will be applied to their respective financialaccount. In one embodiment, the amount of the penalty is dependent uponthe value of the reward. Thus, the potential buyer who received a morevaluable reward may also incur a greater penalty for failure to followthrough with the purchase.

This system overcomes the disadvantages of the prior art demandforecasting systems because potential buyers are providing informationabout specific items that they individually intend to purchase in thefuture. Thus, sellers receive actual demand information directly fromthe consumer, rather than a speculative demand forecast based on ananalysis of general consumer trends and sales history. An additionalaspect of the present system, not present in prior art systems, is thatpotential buyers may be penalized for failing to follow through on theircommitment to purchase the specified item. Thus, potential buyers havean incentive to provide reliable and accurate information. Furthermore,since the potential buyer receives a reward based the informationprovided, the potential buyer is encouraged to provide as accurate andspecific information as possible. Sellers may be allowed to market topotential buyers interested in products that the seller offers.Furthermore, sellers may be informed to discontinue marketing efforts toa potential buyer after the potential buyer purchases the item.

An example of a system embodying the present invention is illustrated inFIG. 1. A potential buyer identification system 100 according to thepresent invention includes a central server 101 coupled to one or moreuser devices 103, 105, 107 (only three are shown in FIG. 1 forillustrative purposes) and coupled to one or more seller devices 109,111 (only two are shown in FIG. 1 for illustrative purposes). Thecentral server 101 can be implemented as a system controller, adedicated hardware circuit, a programmed general purpose computer, orany other functionally equivalent configurable electronic, mechanical,or electro-mechanical device. In a Web embodiment, for example, thecentral server 101 may comprise a Web server hosting a “portal” Web siteor search engine. Alternatively, the central server may be operated by,for example, a credit card processor, a manufacturer, or a franchiser.The user devices 103, 105, 107 and seller devices 109, 111 can likewisebe implemented as dedicated hardware circuits, programmed generalpurpose computers, or any other functionally equivalent configurableelectronic, mechanical, or electro-mechanical devices. The devices canbe connected to the central server 101 via an Internet connection usinga public switched telephone network (PSTN) or cable network. Connectionmay also be provided by dedicated data lines, cellular, PersonalCommunication Systems (“PCS”), microwave, or satellite networks. Usingthese components, the present invention provides a method and apparatuswhich allows sellers access to demand information provided by potentialbuyers.

As shown in FIG. 2, one embodiment of central server 101 includes aprocessor 201, a RAM (Random Access Memory) 203, a ROM (Read OnlyMemory) 205, a clock 207, one or more input device(s) 209, one or moreoutput device(s) 211, a communications port 213 and a data storagedevice 220. In one embodiment, the central server 101 also includespayment processor 217 which may include one or more conventionalmicroprocessors, supporting the transfer and exchange of payments,charges, or debits, attendant to the method of the apparatus. Paymentprocessor 217 may also be configured as part of processor 201.Processing of credit card or other financial account transactions bypayment processor 217 may be supported with commercially availablesoftware, such as the Secure Webserver® manufactured by Open Market,Inc. This server software transmits credit card informationelectronically over the Internet to servers located at the Open Marketheadquarters where card verification and transaction processing ishandled.

A conventional personal computer or workstation with sufficient memoryand processing capability may be used as central server 101. In oneembodiment central server 101 operates as a Web server within anInternet environment, transmitting and receiving intent data generatedby potential buyers and is capable of high volume transactionprocessing, performing a significant number of mathematical calculationsin processing communications and database searches. A microprocessorsuch as the Pentium® III, manufactured by Intel® Corporation'may be usedfor processor 201.

In an alternate embodiment, the central server 101 operates in atelephone environment. In such system, using a telephone, the potentialbuyer is prompted by an interactive voice response unit (IVRU) withinthe central server 101 to input certain information, such as financialaccount information, and data including a time period within which thepotential buyer intends to purchase the particular item. For example,the IVRU may prompt the potential buyer to press “1” on the telephonekeypad if she intends to purchase the item within one week, press “2” ifshe intends to purchase the item within two weeks, and so on. Such anembodiment of the central server 101 affords sellers an alternatemechanism to identify potential buyers. Alternatively, at least onehuman operator may be employed to facilitate communication betweenpotential buyers and the central server 101.

In yet another embodiment, the central server 101 communicates with akiosk in a retail environment. A kiosk is essentially a self-serviceinteractive system, typically a computer system placed inside a box-likestructure, or a desktop computer system for use in performingtransactions, distributing coupons, and/or providing information, suchas providing a layout of a shopping facility to the general public. Thekiosk may employ a touch screen as the input device. However, otherinput devices such as a mouse and/or a keyboard may also be used.

Referring again to FIG. 2, one or more input device(s) 209, such as akeyboard, mouse, touch screen or voice recognition package, are operableto receive information regarding intent to purchase specific items.Alternatively, the input device(s) 209 may be telephone keypads for usewith IVRU technology in telephone systems.

One or more output devices 211 in the form of video displays,electro-luminescent arrays, liquid crystal display panels, printers, orfunctionally equivalent devices, are operable to output informationregarding the status of potential buyer data being computed by theprocessor 201. In addition, or alternatively, the output device(s) 211can be embodied within one or more of the user devices 103, 105, 107 ofFIG. 1.

The central server 101 includes a clock 207 for synchronizing the system100, determining the date and time at which the central server 101receives information regarding potential buyers' intent to purchase aparticular item. Clock 207 is also used for time related calculations inalternative embodiments described below, such as calculating the date bywhich the potential buyer intends to purchase a particular item, basedon an input from the potential buyer. The processor 201 communicateswith user devices 103, 105, 107 and seller devices 109, 111 via thecommunications port 213. The communications port 213 is preferablyimplemented using a T1 communications board, a serial port and modem, aLAN adapter, or any functionally equivalent communications device.

Data storage device 220 is preferably implemented using a memory systemwhich may include random access memory, bard disk drives and/or otherelectronic, magnetic, or optical data recording units. In oneembodiment, where the processor 201 is a general purpose microprocessor,the data storage device 220 stores a program 221 which includesinstructions for executing the methods described herein, by theprocessor 201. The processor 201 is operable to load and run the program221. In the embodiment of FIG. 2, the program 221 stores dataaccumulated or computed by the processor 201 on the data storage device220. This stored data is preferably organized and indexed in one or morerelated relational databases 230, 240, 250, 260, 270 and 280.

In the example embodiment illustrated in FIG. 2, the related relationaldatabases include a potential buyer database 230, a rating database 240,an intent database 250, a reward database 260, a penalty database 270,and a seller account database 280. Each of the databases is explained indetail with reference to FIGS. 3-7, and FIG. 11. One of ordinary skillin the art will recognize that the databases illustrated in FIGS. 3-7and FIG. 11 may contain any number of records and that the records shownare for illustrative purposes only.

Potential buyer database 230, as illustrated in FIG. 3, maintains datapertaining to potential buyers in fields 231, 233, 235 such as potentialbuyer name field 231, potential buyer identifier field 233, and paymentidentifier field 235. The name of the potential buyer, and a paymentidentifier are obtained when a potential buyer first registers with thecentral server 101 through a user device 103, 105, or 107.

Referring now to the potential buyer name field 231, it will beappreciated that potential buyers are not required to use their name solong as a valid payment identifier is provided. For example, potentialbuyers can use an alias or an e-mail address. In the potential buyername field 231 shown, three different potential buyers are listed “JohnSmith”, “ben@domain.com” and “Dan Stevens”.

The potential buyer identifier field 233 stores a unique identifiercorresponding to each of the potential buyers who provide informationregarding items they intend to purchase. This unique identifier might bea universally recognized/government issued personal identificationnumber such as a United States Social Security Number of the potentialbuyer, an address, other unique personal information, or anidentification number generated by the processor 201. In the exemplarypotential buyer database 230 shown, three different correspondingpotential buyer identifiers “123-456-789”, “234-567-890”, and“345-678-901”, are listed, each corresponding to the potential buyers“John Smith”, “ben@domain.com” and “Dan Stevens”, respectively.

The payment identifier field 235 stores the payment information, such asfinancial account information, of each potential buyer. In the exemplarypotential buyer database 230 shown in FIG. 3, three different paymentidentifiers, VISA™ 4226-1234-5678-9012, WEB BUCKS 12345-789, and E-CASH4444-5555-6666, are listed corresponding to the potential buyers “JohnSmith”, “ben@domain.com” and “Dan Stevens”, respectively.

Referring to FIG. 4, an exemplary embodiment of rating database 240, isillustrated. The rating database 240 is used in calculating a rewardoffer based on the data that the potential buyer provides to the centralserver 101. In particular, the rating database 240 stores a ratingassigned to data provided by potential buyers regarding their intent topurchase a particular item. An embodiment of the rating database 240includes an item specificity field 241, an item description rating field242, a degree of certainty field 243, a certainty rating field 244, atime to purchase field 245, and a time rating field 246.

Each of the fields 241, 243, 245 are assigned a rating, stored in fields242, 244, and 246, respectively. In this embodiment of rating database240, the data in each field is rated on a scale of “1” to “5”, but itwill be appreciated that other scales would suffice,

For purposes of illustration, the item specificity field 241 stores thefollowing descriptions: exact, very clear, clear, semi-clear, vague andnone. However, it will be appreciated that more or fewer itemdescriptions may be used. These descriptions represent the clarity orspecificity with which the potential buyers describe the items theyintend to purchase, which may be useful in determining the reward forwhich the potential buyer is eligible. In other words, it may be morevaluable for a seller to know the name and model number of a particulartelevision the potential buyer intends to purchase than to just knowthat the potential buyer intends to purchase a television. Knowing suchspecific information may permit sellers such as manufacturers,retailers, and distributors to better prepare for the demand byadjusting purchasing, inventory, manufacturing, and staffing needsaccording to the predicted demand. The degree of item specificity inputby the buyer is assigned a rating from “1” to “5”, which is stored in acorresponding record in the item description rating field 242. Forexample, in the embodiment shown in FIG. 4, an “exact” item descriptionis assigned a “5”, the highest rating, whereas a “vague” itemdescription is only assigned a “1”.

The degree of certainty field 243 stores a percentage representing thedegree of certainty, i.e., how certain potential buyers are that theywill purchase the item. Each degree of certainty is assigned acorresponding rating. For example, an 80% certainty that the item willbe purchased is assigned a rating “4”, whereas a 40% certainty that theitem will be purchased is only assigned a rating of “2”, The ratings arcstored in a corresponding record in the degree of certainty rating field244.

The time to purchase field 245 stores a time period during which thepotential buyer intends to purchase the item. Again, the time periodsillustrated in the time to purchase field 245 are exemplary, and more,less, shorter or longer time periods may be selected. Each time periodis also assigned a rating. Generally, the shorter the time period inwhich the potential buyer intends to purchase the item, the greater thevalue of the information to the sellers and therefore, the higher therating. For example, a “5-8 day” time period is assigned a rating of“4”, whereas a “17-20 day” time period is assigned a rating of “1”. The“time to purchase” ratings are stored in the time rating field 246.

Referring now to FIG. 5, an exemplary embodiment of intent database 250is shown. The intent database 250 contains pertinent data provided bythe potential buyer and corresponding ratings which are used todetermine an appropriate reward offer. The preferred embodiment of theintent database 250 includes a potential buyer identifier field 251, anitem description field 252, a description rating field 253, a certaintyrating field 254, a time rating field 255 and a reward rating field 256.

The potential buyer identifier field 251 stores a unique identifier foreach potential buyer. In the example shown, three different buyeridentifiers are listed: “123-456-789”, 234-567-890”, and “345-678-901”.Note that these correspond to the three potential buyer identifierslisted in the potential buyer database 230 of FIG. 3.

The item description field 252 stores a description of the item thepotential buyer intends to purchase. Three different entries are listedin the item description field 252, a large screen television, a SONY™PLAYSTATION® and a DELL™ computer, corresponding to the entries in thepotential buyer identifier field 251, “123-456-789”, 234-567-890”, and“345-678-901”, respectively. The description rating field 253 stores arating of the item description the potential buyer intends to purchase,

This rating is generated either automatically by the processor 201 ofthe central server 101 or by operators of the central server 101, basedon the rating guidelines stored in the rating database 240. In general,ratings increase as degree of specificity increases. For example,referring to the first record of the intent database 250, John Smith(the potential buyer with the identifier “123-456-789” as shown inpotential buyer database 230) has input an intent to purchase a largescreen television. It is determined that John is to receive a rating of“2”, for providing a semi-clear description of a product. Thisdetermination is made, for example, based on a scoring algorithm thatdetermines how many products can be defined by the buyer-inputspecifications. In this case, there are dozens of large-screentelevisions on the market, indicating a low degree of specificity inputby the potential buyer. If John had input “large screen PANASONIC™television with picture-in-picture,” he may have received a betterrating, because fewer items fall under this category, as indicated bythe input item specifications.

Item characteristics can be provided by a potential buyer via agraphical user interface (GUI), for example, a series of drop-downmenus, which allow potential buyers to select predefined characteristicsof products that they intend to purchase. Each menu from which thepotential buyer has selected a characteristic could increase the ratingthat the potential buyer receives. As above, if John had input (e.g. viaGUI menu) an intent to purchase a: (1) SONY™ (2) television, with a (3)50″ screen, that would be three characteristics commanding a higherdescription rating. Alternatively, if John had input an intent topurchase a: (1) SONY™ (2) television with a (3) 50″ screen and (4)picture-in-picture feature, that would be four characteristicscommanding an even higher description rating.

The certainty rating field 254 indicates the degree of certainty withwhich the potential buyer intends to purchase the item listed in thecorresponding item description field 252. For example, referring againto the first record of the intent database 250, John Smith has inputthat he is 80% certain that he will purchase the large screentelevision. Referring to the rating database 240 illustrated in FIG. 4,an 80% degree of certainty shown in field 243 corresponds to a rating of“4” in the rating field 243. Thus, referring back to the intent database250 of FIG. 5, a rating of “4” is provided in the certainty rating field254.

The time rating field 255 indicates the time period within which thepotential buyer intends to purchase the item listed in the itemdescription field 252. Referring again to the first record of the intentdatabase 250, John Smith has indicated an intent to purchase the largescreen television within 1-4 days as shown in field 255. The ratingdatabase 240 of FIG. 4, illustrates that a time period of 1-4 days inthe time to purchase field 245 corresponds to a rating of “5” in therating field 243. Thus, a rating of “5” is provided in the time ratingfield 255 of the intent database 250 shown in FIG. “5”.

Although general rating guidelines have been provided above, any ratingscheme may be employed by the central server 101. Additionally, eachaspect of the input intent data may be weighed, for example, accordingto regression analysis. For example, potential buyer follow-throughhistory (i.e., the potential buyers who purchase the product within theguidelines set forth) can be tracked, and analyzed. Based on theanalysis, certain factors can be “weighted” heavier than others when atotal rating is to be calculated. For example, it may be determined thatpotential buyers tend to purchase a product within the time frame setforth, but generally purchase a product other than the one that theyspecified when communicating with the central controller. If so, thecentral controller may weigh the “time to purchase” rating heavier by,for example, multiplying the calculated value by “1.5” before adding itto the total rating. This may effectively increase the importance of“time to purchase” relative to the importance of product specificity(which may have a weighting of “1”) since the “time to purchase” aspectof the input intent data can statistically be relied on as morepredictive of consumer behavior. Additionally, item information, such asretail price and/or margin may affect the reward offer.

It will be appreciated by one of ordinary skill in the art that otherfields may also be included in the intent database 250, such as apotential buyer reputation field (not shown) which could store areputation rating for each potential buyer. Such a reputation rating maybe based on historical data such as the frequency with which a potentialbuyer provides information regarding his intent to purchase items,whether or not the buyer purchases the item within the required timeperiod, confirms purchases within the required time, and/or incurspenalties, and/or based on the types or value of items purchased,financial account status, and/or a value of demographic information suchas address, income, and/or age. For example, if potential buyer JohnSmith frequently provides information regarding his intent to purchaseitems, he may receive a high reputation rating, such as a “4”. However,if John Smith frequently incurs penalties or has problems with hisfinancial account, he may receive a low reputation rating, such as a“2”.

Once a rating in each of the fields 253, 254, 255 has been determined, asum of the ratings is calculated and stored in the reward rating field256 of the intent database 250. For example, referring again to thefirst record of the intent database 250, John Smith (the potential buyerwith the potential buyer identifier “123-456-789”) has a reward ratingof “11/15” indicating eleven points out of a possible maximum offifteen. This reward rating is stored in the reward rating field 256 andused in the reward database 260 illustrated in FIG. 6 to determine thereward that will be offered to John. As will be apparent to one ofordinary skill in the art, other rating systems may be used by centralserver 101 to calculate appropriate rewards, besides the addition of thevarious ratings.

Referring to FIG. 6, the reward database 260 stores various rewardrating ranges in the reward rating range field 261 and a correspondingdescription of the reward in the reward description field 265. In theexemplary embodiment illustrated, the higher the total rating the morevaluable the reward. Typically, the reward database 260 also stores anidentification of the reward, such as a model number of the reward, inthe reward identifier field 263. It will be appreciated that the rewardsprovided in the reward description field 265 are for illustrativepurposes only and any type of reward and/or number of rewards may beoffered, such as coupons, discounts, rebates, products, vouchers,services and/or money. It will also be appreciated that the ratingranges provided in the reward rating range field 261 are exemplary andany type of rating scale may be used. As described above, each ratingmay be weighted before being summed, to yield a reward rating.

Referring again to the intent database 250 of FIG. 5, the potentialbuyer identified as John Smith has a reward rating of “11” stored in thereward rating field 256. This reward rating falls within the range“10-12” in the reward rating range field 261 of the second row of thereward database 260 shown in FIG. 6. Following the row over to thereward description field 265, it can be seen that John qualifies for antravel bag as his reward. The reward database 260 also illustrates thatpotential buyers having a reward rating in the range “13-15” qualify fora portable AM/FM radio, in the range “7-9” qualify for a free compactdisc from AMAZON.COM™, in the range “4-6” qualify for a pocketcalculator, and in the range “1-3” qualify for a free liter of PEPSI™.Although the exemplary reward database 260 shows that a potential buyeronly qualifies for one reward for each reward rating, a potential buyermay qualify for multiple rewards.

Illustrated in FIG. 7 is an exemplary embodiment of the penalty database270. This database 270 maintains data regarding the time by which thepotential buyer has to purchase the item before a penalty is applied tothe potential buyer's financial account. The database includes apotential buyer identifier field 271, a reward identifier field 273, anexpiration date field 275, a confirmation received field 277, aconfirmed item description field 278, and a penalty applied field 279.The potential buyer identifier field 271 corresponds to the potentialbuyer identifier field 233 of potential buyer database 230 shown in FIG.3. The potential buyer identifier field 271 stores a unique identifierfor each of the potential buyers providing information on the items theyintend to purchase. The reward identifier field 273 corresponds to thereward identifier field 263 of the reward database 260 shown in FIG. 6,which stores a unique identifier for each reward offered. The expirationdate field 275 stores the date by which the potential buyers intend topurchase the item. This date is either specified by the buyer or by thecentral server 101. The confirmation received field 277 stores thestatus of the potential buyer's purchasing confirmation. The penaltyapplied field 279 stores data pertaining to any penalty applied againsta potential buyer's financial account for failure to purchase or confirmthe purchase of the item.

The confirmed item description field 278, stores a description of theitem the potential buyer actually purchases. For example, the secondrecord of penalty database 270 indicates that ben@domain.com purchasedan item with the “same” description as that in the item descriptionfield 252 of intent database 250 shown in FIG. 5. However, ifben@domain.com had purchased a SEGA® DREAMCAST™ instead of a SONY™PLAYSTATION®, the SEGA® DREAMCAST™ description would appear in theconfirmed item description field 278. For example, referring to thefirst record in the penalty database 270, John Smith, the potentialbuyer with potential buyer identifier “123-456-789” as indicated in thepotential buyer database 230 shown in FIG. 3, has received a rewardcorresponding to reward identifier ATTA-60. From the reward database 260of FIG. 6, it is determined that the reward identifier ATTA-60corresponds to a travel bag, which was the reward issued to John Smith.Referring now to intent database 250 of FIG. 5, John Smith has indicatedthat he intends (80% certain) to purchase a large screen television in1-4 days. Assuming that John input that information on Jan. 26, 1999, anexpiration date of Jan. 30, 1999 (four days after Jan. 26, 1999) isstored in the expiration date field 275. The confirmation received field277 indicates on the expiration date of Jan. 30, 1999, no confirmationindicating that John had purchased the television had been received.Assuming that the current date is Feb. 2, 1999 (i.e. after theexpiration date), the cost of the travel bag is charged to John'sfinancial account, as shown in the penalty applied field 279.Additionally, a “service fee” may be applied to John's account.

As a further example, ben@domain.com, the potential buyer with potentialbuyer identifier 234-567-890 (as shown in the potential buyer database230 of FIG. 3), has indicated that he intends (60% certain) to purchasea SONY™ PLAYSTATION® by Feb. 4, 1999, shown in the expiration date field275. Since he confirmed his purchase of the SONY™ PLAYSTATION® on Feb.1, 1999, as shown in the confirmation field 277, no penalty is appliedto his financial account, as shown in the penalty applied field 279.

The third record, indicates that Dan Stevens, the potential buyer withpotential buyer identifier 345-678-901 (as shown in the potential buyerdatabase 230 of FIG. 3) has indicated that he intends (100% certain) topurchase a Dell computer by Feb. 6, 1999, shown in the expiration datefield 275. Although he has not confirmed that he has purchased the Dellcomputer, the time by which he has to purchase the computer has notexpired. The confirmation field 277 indicates that confirmation is“pending” (i.e. no confirmation has been received by the central server101), and no penalty has been applied to his financial account, as shownin penalty applied field 279.

FIG. 11 illustrates a seller account database 280 which stores allseller information in fields such as seller name 281, seller identifier283, seller reward offer 285, and seller retrieval date of potentialbuyer intent data 287. The seller name field 281 stores datarepresenting the name of the seller. The seller identifier field 283uniquely identifies each seller. The seller reward offer field 285stores an indication of the reward currently offered by each seller.Seller reward offer field 285 may contain a number of rewards, dependingon the number of rewards offered at a given time by each seller. Sellerretrieval date of buyer offer field 287 stores the date on which theseller retrieved information set forth by a potential buyer (i,e. intentdata). Sellers arc allowed to retrieve such information in order toselectively offer rewards to specific potential buyers. For example, apotential buyer may input that he is interested in purchasing a stereo.Sellers may be allowed access to such information, including a potentialbuyer's contact information. A potential buyer may indicate via a GUIthat he will accept communications from sellers, and authorize thecentral server to allow sellers access to a limited amount of contactinformation for an amount of time (e.g. the input “time to purchase”).If so, the seller can communicate with the potential buyer in order tohelp him find an appropriate product, and additionally offer rewards tothe potential buyer, such as coupons or rebates applicable to specificproducts, offered before of after the product is purchased. In analternate embodiment, the central server does not offer rewards at all,instead, sellers offer rewards directly to potential buyers, based oninformation stored in the seller account database. The seller accountdatabase 280 may be stored locally, and allows the central server 101 totrack and manage all the seller transactions.

FIG. 8 is a process flowchart illustrating one embodiment of the methodof the present invention. In step 801, the central server 101 receivespotential buyer data from a potential buyer. This data may include atleast a unique identifier for the potential buyer, such as a user nameand password or a universally recognized/government issued personalidentification number such as a United States Social Security Number ofthe potential buyer. The data may also include the name of the potentialbuyer and a payment identifier, such as a bank account identifier, debitcard account identifier, credit card account identifier, indication ofelectronic cash, or any other account to which a charge can be applied.The central server 101 may request additional information such ascontact information (e.g. street address, home address, e-mail address,telephone number, etc.), demographic information (e.g. location, income,age, etc.), and shopping or purchasing habits. Upon receiving thispotential buyer data, the central server 101 creates a new record in thepotential buyer database 230 illustrated in FIG. 3 to store the data.

Some potential buyers may not want to provide a payment identifier. Inone embodiment, these potential buyers will not be able to receive areward for providing intent data, because the central server 101 wouldhave no way to charge (i.e., penalize) them if they fail to purchase theitem within the particular time. In another embodiment, the centralserver 101 may offer less valuable rewards to those potential buyers whodo not want to provide a payment identifier. In this way, the centralserver 101 is still able to obtain demand information and no penaltystructure is required. For example, a potential buyer who does notprovide a payment identifier may receive rewards such as advertisementsand coupons targeted toward the potential buyer's spending habits ortoward an item similar to the item that the potential buyer intends topurchase.

In step 803, the central server 101 receives intent data from thepotential buyer. This data includes at least a description of an itemthe potential buyer intends to purchase within a particular time period.The time period and/or the item description can be specified by thepotential buyer. For example, the potential buyer may indicate an intentto purchase a television within five days. Alternatively, the centralserver 101 may specify the time period and/or the item description. Thecentral server 101 may display a message such as “click here if you aregoing to buy a television within the next week” or “click here if youare going to buy a television within the next two weeks.” Potentialbuyers would then click on the appropriate controls and provide datasuch as a payment identifier and specific product description.

In either embodiment discussed above, the intent data may include adegree of certainty with which the potential buyer intends to purchasethe item within the particular time, a payment identifier, a type ofstore from which the potential buyer intends to purchase the item, anddemographic information. For example, a potential buyer may be 60%certain that she will purchase the item within the particular timeperiod. In one embodiment, the payment identifier is provided in step801 as part of the potential buyer data. In an alternate embodiment, thepayment identifier is provided in step 803 as part of the intent data.In yet another embodiment, the payment identifier is not provided atall, as explained above. The potential buyer may provide demographicinformation (e.g. street address and state, income level, and/or age) ora purchasing profile (e.g. the types of merchants the potential buyerfrequents, which may be online or retail shopping). This intent data isstored in the intent database 250 illustrated in FIG. 5.

In Step 805, the central server 101 determines an appropriate rewardbased on the intent data received from the potential buyer. As explainedwith reference to the intent database 250 illustrated in FIG. 5, arating may be assigned to each piece of information provided by thepotential buyer. Referring to the intent database 250 of FIG. 5 and thereward database 260 of FIG. 6, a sum of all the ratings for a particularpotential buyer may determine a reward that the potential buyer iseligible to receive.

In one embodiment, once the central server 101 determines a reward forwhich the potential buyer is eligible, the central server 101 outputsthe reward offer to the potential buyer in step 807. In an alternateembodiment, the central server 101 may determine multiple rewards forwhich the potential buyer is eligible and permit the potential buyer toselect one or more of the rewards. In another embodiment, a potentialbuyer may get a reward, such as a discount or rebate, after the centralserver 101 receives a confirmation signal from the potential buyer. Forexample, a potential buyer's financial account may be credited apredetermined amount (i.e., the amount of the reward) if the centralserver receives a confirmation signal indicating that the potentialbuyer purchased the item within the particular time period. In yetanother embodiment, the central server 101 may offer a particular rewardto encourage potential buyers to provide information about items theyintend to purchase. For example, the central server 101 may display amessage “Planning to buy a stereo? If so, click here and you may receivea free CD from AMAZON.COM™!” Then, potential buyers could be prompted toprovide information about the stereo they intend to purchase.

A preferred embodiment includes a step 809 in which the potential buyercan either accept or reject the reward offer. If the reward offer isrejected then the central server 101 determines an alternate rewardoffer based on the intent data in step 811, and repeats steps 807, 809,and 811 until the potential buyer either cancels the transaction oraccepts a reward offer. If the potential buyer cancels the transaction,the process terminates. But, if the potential buyer accepts the rewardoffer, then in step 813 the central server 101 issues the reward to thepotential buyer. The buyer may be prompted to input a valid address towhich the reward may be delivered. Alternatively, the buyer may bedirected to an e-commerce merchant's Web page and provided with anelectronic gift certificate redeemable for the selected reward.

FIG. 9 is a process flowchart illustrating an example embodiment of themethod for receiving a confirmation signal from the potential buyer ofthe present invention. In step 901 the potential buyer inputs hispotential buyer identifier which is received by the central server 101.As described above, this identifier can include a name, password, socialsecurity number and/or payment identifier.

In step 903 the central server 101 receives a confirmation signal thatthe potential buyer has purchased the item within the specified timeperiod. In one embodiment, the potential buyer provides confirmationinformation to the central server 101 indicating that he has purchasedthe item within the specified time period. For example, once thepotential buyer provides his unique identifier, the central server 101may display a list of all the pending items the potential buyer intendsto purchase, but still has not purchased. To confirm a purchase, thepotential buyer then checks a box next to the item he has purchased.Alternatively, the potential buyer may be required to provide specificinformation pertaining to the item, such as the serial number of theitem, that the central server 101 can use to verify that the potentialbuyer has indeed purchased what he claimed he would. For example, thecentral server 101 can query a manufacturer's database to verify thevalidity of a serial number input by the potential buyer. If thepotential buyer purchases the item online or over the telephone, thepotential buyer can provide the central server 101 with a transactionidentifier that can serve as a confirmation number, which can indicatethat the potential buyer has purchased what he claims to have purchased.For example, the potential buyer may receive a confirmation e-mail fromthe merchant from whom the item was purchased and then forward thee-mail to the central server 101. The potential buyer may also mail orfax a proof-of-purchase from the packaging of the item, a receipt, avoucher or a rebate, or forward a copy of a credit card bill or areceipt to the central server 101 along with the potential buyeridentifier.

In an alternate embodiment, the central server 101 receives confirmationinformation from someone other than the potential buyer. For example,the potential buyer's credit card company could notify the centralserver 101 when the purchase is made, or the seller of the item couldnotify the central server 101, for example, via a point-of-sale (POS)system once the purchase has been made. Although examples have beenprovided, other modes of confirming that the potential buyer haspurchased the item within the specified time may be used so long as themode used provides the central server with an indication of the date theitem was purchased.

In step 905 the central server 101 determines whether the confirmationsignal is valid. For example, the central server 101 determines whetherthe confirmation signal was received before the expiration of thepotential buyer-input “time to purchase”. Also, the central server 101may query the seller or manufacturer databases to determine whether aserial number, proof-of-purchase number, or other unique item identifieris valid, and, based on the item identifier, the degree to which thepurchased item corresponds to the input item. If the central server 101determines the confirmation is not valid, then in step 907 the centralserver prompts the potential buyer to provide further confirmationinformation, and steps 903, 905, 907 are repeated until the confirmationis determined to be valid. Then at step 909 the central server updatesthe confirmation received field 277 of penalty database 270 illustratedin FIG. 7, to indicate whether the confirmation signal has beenreceived. Generally, if the information pertaining to the purchased itemis similar to the information pertaining to the input item, theconfirmation signal will be determined to he valid, despite anypenalties the potential buyer may incur. An indication of the similarityof the input and purchased items is written to the confirmed itemdescription field 278.

FIG. 10 illustrates a process by which a penalty is applied in thepresent invention. Preferably, this process is performed periodically,for example, hourly or daily. In step 1001, the central server 101determines whether a penalty should be applied to the potential buyer'sfinancial account. In the preferred embodiment, the central server 101makes this determination by comparing the current date to the expirationdate field 275 in the penalty database 270 shown in FIG. 7, and bychecking the confirmation received field 277 in the database 270. If thecurrent date is before the expiration date the process ends at step1003. Also, if the current date is after the expiration date but theconfirmation field 277 of the penalty database 270 indicates that avalid confirmation has been received, then the process ends at step1003.

On the other hand, if the current date is after the expiration date andthe confirmation received field 277 indicates that a confirmation hasnot been received, then the central server 101 determines that a penaltyshould be applied to the potential buyer's financial account. Thecentral server 101 determines the appropriate penalty (step 1005) andprocesses the penalty against the appropriate potential buyer'sfinancial account (step 1007).

In one embodiment, the central server 101 determines whether a penaltyshould be applied by comparing the item description field 252 of theintent database 250 shown in FIG. 5 and the confirmed item descriptionfield 278 of penalty database 270 of FIG. 7. Even if the current date ison or before the expiration date, if the confirmed item descriptionfield 278 indicates that the potential buyer purchased an itemsignificantly different from that provided in the item description field252 of the intent database 250, the central server 101 may determinethat a partial penalty or a full penalty should be applied. For example,referring to the intent database 250 of FIG. 5, the first recordindicates that John Smith, the potential buyer having the buyeridentifier “123-456-789” as shown in the potential buyer database 230 ofFIG. 3, intends to purchase a large screen television in 1-4 days. IfJohn Smith purchases a small screen television instead of the largescreen television, the central server 101 may determine that no penalty,or a fraction of the penalty fee that would have applied if John Smithhad not purchased anything, should be applied to John Smith's financialaccount. If John Smith purchased an extra large screen television, thecentral server 101 may determine that a partial penalty, no penalty, oreven that a greater value reward should be issued to John Smith. In oneembodiment, for each item the potential buyer intended to buy, there canbe one or more corresponding entries in a database (not shown) toindicate a respective partial penalty amount for similar items that areinstead purchased.

A purchased item may be considered similar to the item the potentialbuyer indicated that he would purchase if: (i) an item identifierassociated with the purchased item is stored in a database listingsimilar items; (ii) the purchased item is in the same item category(e.g. televisions); or (iii) one or more item features of the purchaseditem correspond to one or item features of the item the potential buyerindicated that he would purchase.

The central server 101 may also apply a partial penalty when thepotential buyer purchases the item after the expiration date, or whenthe potential buyer purchases the item before the expiration date, butfails to transmit confirmation information to the central server 101until after the expiration date.

In step 1005 the central server 101 determines an appropriate penalty tobe applied to the potential buyer's financial account. In the preferredembodiment, the appropriate penalty is the cost or value of the rewardissued to the potential buyer, which may be the price of the reward inthe marketplace, the cost of the reward to manufacture, or the cost ofthe reward to the seller. In an alternate embodiment, if the rewardissued was a discount, voucher, or rebate on the item purchased, theappropriate penalty may be the amount of the discount, voucher or rebateand/or a shipping and/or handling charge. In yet another embodiment, theappropriate penalty may be an arbitrary fee, such as $20.00.

If the central server 101 determines that a partial penalty should beapplied to the potential buyer's financial account, then the appropriatepenalty may depend upon several factors. For instance, if the potentialbuyer purchased a different item than the item originally specified,then the partial penalty may depend upon the relatedness between theitem purchased and the item intended to be purchased. In the exampleprovided above, John Smith purchased a small screen television insteadof the large screen television. Referring to the penalty applied field279 of the penalty database 270 shown in FIG. 7, the first recordindicates that John Smith's penalty for failing to purchase the largescreen television within 1-4 days is the cost of ATTA-60, the travelbag. Since a small screen television is similar to a large screentelevision, the central server 101 may apply no penalty or a smallerpenalty to John Smith's financial account. However, if John Smithpurchased a video cassette recorder instead of the large screentelevision, then the central server 101 may apply a penalty closer tothe cost of ATTA-60 to John Smith's financial account.

In the instance when the potential buyer purchased the item after theexpiration date, the appropriate partial penalty may depend upon theamount of time that passes between the expiration date and the purchasedate. For example, if John Smith purchased the large screen televisionone day after the expiration date, the penalty would be less than if hepurchased the large screen television one week after the expirationdate. For example, the total amount of a penalty may be chargedincrementally over time, specifically, over the time after the date bywhich the potential buyer committed to purchase the item. Similarly,when the potential buyer fails to transmit the confirmation informationprior to the expiration date, the appropriate penalty may depend uponthe amount of time that passes between the expiration date and the datethe central server receives the confirmation information. The centralserver 101 may apply the total penalty to the potential buyer'sfinancial account, and then refund a portion of the penalty once theappropriate confirmation information is received.

In one embodiment, the central server 101 may determine an appropriatepenalty by comparing the reward rating associated with the intent datainput by the potential buyer, to the reward rating associated withactual data (i.e., data representing the actions taken by the potentialbuyer). Referring to the above example, John Smith input that he was 80%(rating: 4) certain to purchase a large screen television (rating: 2)within 1-4 days (rating: 5), and subsequently received a reward ratingof 11/15 (4+2+5=11). Assuming that he purchased the television on thefifth day, and that he had registered intent to purchase the televisionwithin 5-8 days, the central server 101 may determine the resultantreward rating to have been calculated as 10/15 (4+2+4=10). Thus, thecentral server 101 may subtract the resultant actual reward rating fromthe reward rating associated with intent data registered by thepotential buyer. In the example given, the difference is one (1) (i.e.11−10=1). Based on the difference between the actual data and the intentdata, the central server 101 may then calculate an appropriateproportional penalty.

In an alternate embodiment, potential buyers may be charged a periodicpenalty. In this embodiment, potential buyers are charged a percent ofthe total penalty for each period of time that they are delinquent intransmitting confirmation information. For instance, take the examplewhen a potential buyer is to be charged a total penalty of $10.00 if aconfirmation signal is not sent by the expiration date. The first dayafter the expiration date, the potential buyer's financial account ischarged $2.00 (i.e., 20% of the total $10.00 penalty). The second dayafter the expiration date, the potential buyer's financial account ischarged another $2.00 (another 20% of the total penalty), and so onuntil the total $10.00 penalty is charged, or until the confirmationsignal is received.

Although several embodiments directed toward how the central server 101determines the application of a penalty have been discussed, it will beappreciated by one of ordinary skill in the art that such discussionsare exemplary. The penalty application decisions will be made at thediscretion of the central server operators.

While the method and apparatus of the present invention has beendescribed in terms of its presently preferred and alternate embodiments,those skilled in the art will recognize that the present invention maybe practiced with modification and alteration within the spirit andscope of the appended claims. The specifications and drawings are,accordingly, to be regarded in an illustrative rather than in arestrictive sense.

Further, even though only certain embodiments have been described indetail herein, those having ordinary skill in the art will certainlyunderstand that many modifications are possible without departing fromthe teachings thereof. All such modifications are intended to beencompassed within the following claims.

1-76. (canceled)
 77. A method comprising: (a) receiving an itemdescription from a potential buyer; (b) determining a reward based onthe item description; (c) providing a reward offer concerning the rewardto the potential buyer; (d) determining whether the potential buyeraccepts or rejects the reward offer; and (e) modifying the reward if thepotential buyer rejects the reward offer.
 78. The method of claim 77,wherein the reward comprises at least one of a coupon, a discount, arebate, a product, a voucher, or a service.
 79. The method of claim 77,further comprising repeating steps (b) through (e) until the potentialbuyer accepts the reward offer.
 80. The method of claim 79, furthercomprising issuing the reward to the potential buyer.
 81. The method ofclaim 80, further comprising: determining whether the potential buyerredeemed the reward; and issuing an additional reward to the potentialbuyer based on whether the potential buyer redeemed the reward.
 82. Themethod of claim 77, further comprising receiving demographic informationabout the potential buyer, wherein determining the reward is furtherbased on the demographic information.
 83. The method of claim 77,further comprising receiving a purchasing profile of the potentialbuyer, wherein determining the reward is further based on the purchasingprofile.
 84. A non-transitory computer-readable medium storing a programthat, when executed by an apparatus, causes to apparatus to: (a) receivean item description from a potential buyer; (b) determine a reward basedon the item description; (c) provide a reward offer concerning thereward to the potential buyer; (d) determine whether the potential buyeraccepts or rejects the reward offer; and (e) modify the reward if thepotential buyer rejects the reward offer.
 85. The computer-readablemedium of claim 84, wherein the reward comprises at least one of acoupon, a discount, a rebate, a product, a voucher, or a service. 86.The computer-readable medium of claim 84, wherein the program, whenexecuted by the apparatus, further causes the apparatus to repeat steps(b) through (e) until the potential buyer accepts the reward offer. 87.The computer-readable medium of claim 86, wherein the program, whenexecuted by the apparatus, further causes the apparatus to issue thereward to the potential buyer.
 88. The computer-readable medium of claim87, wherein the program, when executed by the apparatus, further causesthe apparatus to: determine whether the potential buyer redeemed thereward; and issue an additional reward to the potential buyer based onwhether the potential buyer redeemed the reward.
 89. Thecomputer-readable medium of claim 84, wherein the program, when executedby the apparatus, further causes the apparatus to receive demographicinformation about the potential buyer, wherein determining the reward isfurther based on the demographic information.
 90. The computer-readablemedium of claim 84, wherein the program, when executed by the apparatus,further causes the apparatus to receive a purchasing profile of thepotential buyer, wherein determining the reward is further based on thepurchasing profile.
 91. A device comprising a processor and a memory,the memory storing a program that, when executed by the processor,causes the device to: (a) receive an item description from a potentialbuyer; (b) determine a reward based on the item description; (c) providea reward offer concerning the reward to the potential buyer; (d)determine whether the potential buyer accepts or rejects the rewardoffer; and (e) modify the reward if the potential buyer rejects thereward offer.
 92. The device of claim 91, wherein the reward comprisesat least one of a coupon, a discount, a rebate, a product, a voucher, ora service.
 93. The device of claim 91, wherein the program, whenexecuted by the processor, further causes the device to repeat steps (b)through (e) until the potential buyer accepts the reward offer.
 94. Thedevice of claim 93, wherein the program, when executed by the processor,further causes the device to issue the reward to the potential buyer.95. The device of claim 94, wherein the program, when executed by theprocessor, further causes the device to: determine whether the potentialbuyer redeemed the reward; and issue an additional reward to thepotential buyer based on whether the potential buyer redeemed thereward.
 96. The device of claim 91, wherein the program, when executedby the processor, further causes the device to receive demographicinformation about the potential buyer, wherein determining the reward isfurther based on the demographic information.
 97. The device of claim91, wherein the program, when executed by the processor, further causesthe device to receive a purchasing profile of the potential buyer,wherein determining the reward is further based on the purchasingprofile.